Binance leans on 100+ AI models to block $10.53B in risky funds

Binance recasts AI as core security infrastructure, saying 24+ initiatives and 100+ models have blocked $10.53B in risky funds from 2025 through Q1 2026.

Binance’s latest security report portrays artificial intelligence not as a feature but as the backbone of its fraud defenses, with the company saying it has “set up 24+ AI initiatives across compliance, with 100+ AI models powering anti-fraud controls.” According to a Binance Research paper, these systems have “reduced illicit fund exposure by 96%,” with a custom risk engine called Strategy Factory continuously recombining rules and machine-learning models to flag abnormal behavior at login, trading and withdrawal stages.

Binance turns AI into security infrastructure

The numbers in the report underscore the scale. In fiscal year 2025, ending November 2025, Binance says its enhanced detection systems blocked $6.69 billion in fraud and scam attempts, blacklisted 36,000 addresses and issued more than 9,600 real-time pop‑up warnings each day. From 2025 through Q1 2026, the exchange estimates it cumulatively “prevented $10.53B in user losses,” a figure echoed in a separate Binance social post that framed AI as “infrastructure” after intercepting 22.9 million threats in Q1 2026 alone.

In Q1 2026, Binance’s systems stopped 22.9 million scam and phishing attempts, up 54% quarter‑on‑quarter and 209% year‑on‑year, and safeguarded about $1.98 billion in user funds. The company notes that while this represented a 7% year‑on‑year increase in funds protected, it was down 30% quarter‑on‑quarter, a trend it attributes to “seasonal dynamics” such as holiday spending cycles that temporarily alter scam exposure. A Facebook post summarizing the data highlighted “100+ live AI models,” a phishing rate “down: 3.2% → 0.4% (8x),” and more than 4,000 users recovered per month as examples of what “AI at scale looks like.”

AI arms race in crypto security

Binance’s security team also stresses that attackers are moving just as fast. In a related Binance commentary, researchers conclude that “AI is currently 2x better at exploitation than detection,” warning that AI-powered exploits cost around $1.22 per smart contract and are projected to get 22% cheaper every two months. That asymmetry, they argue, is pushing 75% of financial institutions to increase AI spending on financial crime detection as crypto exchanges and banks confront the same wave of deepfake KYC attempts, hyper‑realistic phishing and automated credential stuffing.

On the defensive side, Binance points to its KYC Face Attack and Liveness Detection models, which it says are continuously updated to counter “physical masks, static photo spoofing, deepfake video and synthetic face swaps,” and claims AI has delivered a 100x increase in KYC processing throughput. In a broader industry context, a crypto.news report on AI-enabled fraud summarized how JPMorgan’s AI systems helped prevent an estimated $1.5 billion in losses, while Binance’s AI stack has blocked over $10.5 billion since 2025, framing the exchange’s latest report as part of a wider AI security arms race rather than an isolated upgrade.